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Sebelius issues alert on health law scams

Since President Obama signed health care legislation, scam artists have been trying to push phony insurance policies to take advantage of confused consumers. In response, Health and Human Services Secretary Kathleen Sebelius issued a fraud alert in hopes of stymieing potential frauds.

In a letter to state attorneys general and insurance commissioners, Sebelius called the scams "unacceptable."

"Unfortunately, scam artists and criminals may be using the passage of these historic reforms as an opportunity to confuse and defraud the public. Media accounts indicate that fraudsters have gone door to door selling phony insurance policies. Some have attempted to make dishonest profits by urging consumers to obtain coverage in non-existent "limited enrollment" period that they falsely claim was made by the new legislation."

She urged state officials to be aware of potential schemes and to "crack down on those who seek to defraud consumers."

About the author

Daryl Paranada is the associate web producer for Marketplace overseeing all daily website content and production, as well as producing multimedia features -- including the popular economic explainer series Whiteboard -- and special projects. Follow him on Twitter @darylparanada.